Bolton Business Finance is an independent merchant cash advance broker. We compare offers from the UK lenders that advance against card and online sales, so you can see what is available before you commit to anything.
A merchant cash advance, also called a business cash advance, gives you a lump sum today, repaid as a fixed percentage of your future debit and credit card takings. When sales are strong you repay more. When they slow, repayments reduce automatically. There are no fixed monthly instalments and no property security in most cases.
Written by Marcus Wright, owner and founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed September 2026.
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The short version
- A merchant cash advance is a lump sum advanced against your future card and online sales, repaid as a percentage of daily takings rather than a fixed monthly instalment.
- Advances across our panel run from £5,000 to £2 million, typically 1 to 2 times your average monthly card turnover.
- Cost is a fixed fee expressed as a factor rate, ranging from about 1.03 to 1.35 as at September 2026, with most cases between 1.10 and 1.25. At a factor rate of 1.20 you repay £1,200 for every £1,000 advanced.
- Lenders take between 1% and 26% of daily card takings until the total is repaid. Most facilities clear in 6 to 12 months.
- Typical minimum requirements are 3 months trading and £5,000 a month in card or online revenue. You do not need to be a homeowner and a low credit score does not automatically rule you out.
- Decisions usually come back within 24 hours. Funds typically arrive 2 to 14 working days after contracts are signed.
- Merchant cash advances to limited companies are generally unregulated. Bolton Business Finance is not authorised by the FCA and arranges non-regulated, business-purpose finance only.
| Item | Typical position |
|---|---|
| Advance size | £5,000 to £2 million, more on renewals |
| Multiple of card turnover | Usually 1 to 1.25 times average monthly card sales, up to 2 times |
| Cost | Fixed fee of roughly 3% to 35% of the advance, quoted as a factor rate of 1.03 to 1.35 |
| Most common factor rates | 1.10 to 1.25 |
| Repayment | 1% to 26% of daily card takings, collected automatically |
| Term | 30 days to 12 months, most clear in 6 to 12 months |
| Minimum trading history | 3 months |
| Minimum card turnover | £5,000 a month |
| Security | Usually unsecured. No property charge. Personal guarantee may be requested |
| Homeownership | Not required |
| Decision | Within 24 hours of a complete application |
| Funding | Typically 2 to 14 working days after signing |
| Top up | Usually available once 60% of the advance has been repaid |
| Approval rate | Over 90% with the main lenders, where eligibility criteria are met |
| Regulation | Generally unregulated when provided to a limited company |
Figures are ranges across our lender panel as at September 2026 and are not a quote. The advance, factor rate and percentage of card sales you are offered depend on your turnover, sector, trading history and existing commitments. Bolton Business Finance Ltd is not authorised by the Financial Conduct Authority and arranges non-regulated, business-purpose finance only.
What a merchant cash advance is and how it works
A merchant cash advance is a form of business funding where a lender advances you a lump sum in exchange for a percentage of your future card sales. Repayments are taken automatically as a fixed percentage of your daily or weekly card takings until the advance plus the agreed fixed fee is repaid.
You receive a lump sum based on your recent card turnover. A fixed factor rate is agreed in advance. The lender then takes an agreed percentage of your future card machine or online card payments, known as the sweep, until the total amount due has been collected. Quiet months mean lower repayments. Busier months mean faster repayment. Nothing changes about how you take payments and there is no separate direct debit to manage.
We specialise in helping UK businesses with turnovers from £250,000 to £10 million access this type of funding quickly, even where traditional bank loans have been declined. The acceptance rate is high and you may be accepted even if you have been declined for other types of business loan.
What a merchant cash advance costs
Costs are expressed as a factor rate rather than an interest rate. Across our panel in September 2026, factor rates run from about 1.03 to 1.35, with most cases falling between 1.10 and 1.25. The total cost is fixed at the outset, so you know exactly what you will repay on day one. It does not accrue and it does not change if the facility runs longer than expected.
| Item | Figure |
|---|---|
| Average monthly card turnover | £40,000 |
| Advance | £50,000, about 1.25 times monthly card sales |
| Factor rate | 1.20 |
| Total repayable | £60,000 |
| Total cost of the advance | £10,000, fixed |
| Sweep | 15% of daily card takings |
| Collected per month at current turnover | About £6,000 |
| Expected time to clear | About 10 months, faster if sales rise |
Illustration only, using a factor rate from the middle of our September 2026 panel range. Our merchant cash advance factor rate calculator runs the same numbers for any advance, factor rate and sweep, and converts the factor rate into an equivalent annual cost so you can compare it against a term loan.
Three things move the factor rate. Card turnover is the biggest, because a larger and steadier sales history supports a better rate. Sector is next, with established retail and hospitality priced below newer or more volatile trades. Trading history is third, with a business that has been going five years priced below one that has been going five months. Repaying early does not usually save money, because the total cost is fixed by the factor rate rather than accruing over time.
Merchant cash advance vs traditional business loan
| Feature | Merchant cash advance | Traditional business loan |
|---|---|---|
| Security required | Usually unsecured | Often requires security or personal guarantee |
| Repayment style | Percentage of future card sales, flexible | Fixed monthly repayments |
| Speed of funding | Decision in 24 hours, funds in 2 to 14 working days | Typically 2 to 4 weeks |
| Credit score weighting | Lower, the focus is on card turnover | Higher, personal and business credit matter |
| Typical cost structure | Factor rate, fixed total cost | Interest rate plus arrangement fees |
| Early repayment benefit | Usually none, total cost fixed | Interest usually reduces |
| Minimum trading history | Often 3 to 6 months | Usually 12 to 24 months |
| Homeownership | Not required | Frequently expected for larger unsecured lending |
| Ideal for | Seasonal or variable card sales businesses | Predictable cash flow businesses |
A merchant cash advance provides access to business finance on a short term basis and is usually repaid within 6 to 12 months. It could give access to funding when you are not able to get other types of business funding and have been declined. However it may be more expensive than an alternative, such as a business loan or a revolving credit facility. We cannot give financial advice, therefore you will need to assess if the benefit is worth the cost of borrowing.
Which lenders offer merchant cash advances in the UK
There is no single list of UK merchant cash advance lenders, because the market is made up of four different kinds of funder that lend in different ways and rarely compete for the same case. Knowing which group a business belongs in is most of the job.
| Lender type | Typical terms | What they fund |
|---|---|---|
| Large institutionally funded MCA platforms | £5,000 to £2 million and above. Factor rates from 1.03. Terms 30 days to 12 months. Accept 70 or more card and online payment providers. | The bulk of the market. Retail, hospitality, ecommerce, health and beauty. Highest approval rates, fastest decisions, best pricing on strong turnover. |
| Payment provider in-house funding | Advance tied to the turnover you process with that one provider. Rates vary and are not usually negotiable. | Existing customers of that payment provider only. Convenient, but you cannot compare it against anything and you are tied to keeping that terminal. |
| Revenue based finance lenders | £10,000 upwards, often much higher. Fixed weekly or monthly repayments rather than a daily sweep. Limited companies only. | Ecommerce and direct to consumer brands with stock to buy, and wholesale businesses funding production ahead of purchase orders. Not usually available to sole traders. |
| Smaller specialist and short term funders | £5,000 to £250,000. Factor rates at the higher end, commonly 1.25 to 1.35. Shorter terms. | Newer businesses, lower turnover, adverse credit, and cases the larger platforms decline. More expensive, but they say yes where others do not. |
Ranges describe lender groups on our panel, not individual products, and are current as at September 2026. We are an independent broker and are not affiliated with any lender or payment provider.
Refinancing an existing cash advance
If you already have a merchant cash advance in place, another lender can often buy it out. The usual test is that you must qualify for an advance of at least twice your outstanding balance with the current provider, so the existing facility is settled and there is meaningful new money left over. Where that works it consolidates two commitments into one and frees up the sweep. Where it does not, a top up with your existing lender once 60% has been repaid is normally the better route.
Using a cash advance alongside other funding
A merchant cash advance does not have to replace other borrowing. Lenders in this market co-lend well alongside bridging loans, longer term unsecured lending, secured lending and commercial property finance, because they are repaid from a different source. That makes an advance useful for filling a gap in a larger funding package rather than as a standalone answer.
What a merchant cash advance broker does
A merchant cash advance broker approaches multiple lenders on your behalf, presents the same trading information to each and comes back with offers you can put side by side. Because pricing in this market is set case by case rather than published, two lenders looking at the same business can quote factor rates that differ by 10 percentage points or more. Going direct to one lender, or accepting the offer your card terminal provider puts in front of you, gives you no way of knowing whether it is competitive.
We compare loan offers from a wide range of lenders, we work with you from start to completion to make sure the funding pays out on time, and we assist with any paperwork required. Using our expertise and contacts, we can source funding for a wide range of circumstances, including where you have been declined elsewhere. You can also compare merchant cash advance quotes through us before making a decision.
Our fees
There is no broker fee on a merchant cash advance. We are paid a commission by the lender on completion, which does not increase the cost to you. We tell you what that arrangement is before you commit to anything, and we are not tied to any lender or payment provider.
Who can apply
Most UK businesses that take regular card payments can apply, including limited companies, sole traders and partnerships. Typical minimum requirements are 3 months trading and average card turnover of £5,000 per month, although criteria vary by lender. You do not need to be a homeowner. Lenders in this market have funded well over £1 million to non-homeowners where affordability and credit support it, which is unusual in unsecured business lending.
Credit checking is lighter than a bank would apply. Lenders generally run a soft check on the directors and a hard check on the limited company itself, and soft checks only on sole traders and partnerships. Low credit scores or previous declines do not automatically rule you out, because the decision rests mainly on the card turnover coming through the terminal or gateway. See our page on merchant cash advances with no credit check for how that works in practice.
Funds can be used for almost any legitimate business purpose, including stock, refurbishment, marketing, tax bills, equipment, hiring staff, expansion or general cash flow support.
Which industries can apply for a cash advance
Any business that takes regular card payments either in store, over the phone or via a website can apply for a merchant cash advance. Here are the common sectors that apply:
- Bars, pubs and clubs
- Restaurants
- Takeaways and fast food
- Hotels and B&Bs
- Hair and beauty salons
- Independent retailers and shops
- Vets
- Dentists
- Automotive garages and MOT
- Furniture and soft furnishings
- Theatres and cinemas
- Sport and social clubs
- Cosmetic surgery
- Gyms
- Wholesalers
- Ecommerce and online
Most trading businesses that take card payments from consumers on a regular basis could be eligible for this type of finance.
Pub and bar merchant cash advance
Pubs and bars can apply for a cash advance as long as you are open and still processing card payments via your terminals. Get in touch to speak with an expert on bar and pub finance.
Retail shop merchant cash advance
Independent retailers are the single largest sector in this market. A shop with a card terminal and three months of trading behind it will usually have options, and the advance is commonly used for stock ahead of a busy season, a refit, or opening a second site. Because repayment moves with takings, a quiet January costs less than it would on a fixed monthly loan.
Hair and beauty salon merchant cash advance
There are a number of cash advance providers that cater for hair salons and beauty salons. Provided you are taking a significant proportion of your takings via a card terminal, then you can apply. We have experienced salon finance experts that can discuss your options.
Takeaways: Just Eat, Deliveroo and Uber Eats cash advance
If you are taking a large proportion of your card takings via Just Eat, it is possible to take out a cash advance against the average monthly income. This option is available to many fast growing takeaways and fast food restaurants. Click on the options below to find out more:
Restaurant cash advance
Even if you are not taking orders via Just Eat or other platforms, you can still apply for a merchant cash advance. They can be secured against average card takings from phone or website orders. See our page on restaurant loans and finance.
Ecommerce and online retail finance
If your business is primarily online then you are likely taking most of your income via a merchant service provider such as Amazon, Stripe or Shopify. You could potentially borrow up to £2 million unsecured with a merchant cash advance, with repayments made from your future sales. Online sellers holding physical stock may also qualify for revenue based finance, which works on fixed weekly or monthly repayments rather than a daily sweep, and is often a better fit where the money is going into inventory. See Amazon FBA business loans.
Payment providers we can fund against
There are a large number of card payment machine and payment service providers in the UK. Whether you take card payments in person or online, you can still apply. Lenders on our panel accept more than 70 processors between them and base affordability on how much revenue comes through that source. Below are the most common ones, with a page for each covering how funding works against that provider.
We are not affiliated with any of the card payment providers below. We are an independent business finance broker that sources merchant cash advances against these revenue streams.
Card terminals and in person payments
| Provider | Also known as |
|---|---|
| SumUp | Card reader and terminal |
| Dojo | Formerly Paymentsense terminals |
| Worldpay | Includes CardSave |
| Barclaycard | Barclaycard Payments |
| Elavon | Elavon Merchant Services |
| Paymentsense | Now part of Dojo |
| Takepayments | Formerly Payzone Merchant Services |
| Handepay | Handepay Merchant Services |
| Payzone | Payzone terminals |
| PayPoint | PayPoint One |
| Cardnet | Lloyds Bank Cardnet |
| Global Payments | Includes HSBC Merchant Services |
| Streamline | Worldpay Streamline |
| FDMS | First Data Merchant Services, now Fiserv |
| RMS | Retail Merchant Services |
| MyPOS | MyPOS terminals |
| Teya | Formerly SaltPay |
| Tyl | Tyl by NatWest |
| Clover | Clover POS |
| Lopay | Lopay card reader |
| Verifone or Ingenico | Card machine hardware |
| Adyen | In person and online |
| Monek | Monek Limited |
| Transax | Transax Merchant Services |
| Card Cutters | Card Cutters UK |
| AIB Merchant Services | AIBMS |
| Axcess Merchant Services | Axcess |
| Independent Merchant Services | IMS |
| NetPay | NetPay Merchant Services |
| EVO Payments | EVO Merchant Services |
Ecommerce gateways and online payments
| Provider | Also known as |
|---|---|
| Stripe | Online card processing |
| Shopify | Shopify Payments |
| PayPal | Alternative to PayPal Working Capital |
| Square | Square reader and online |
| Zettle | Formerly iZettle, now PayPal Zettle |
| Opayo | Formerly Sage Pay, now Elavon |
| Trust Payments | Formerly Secure Trading |
| Ecommpay | Online gateway |
| GoCardless | Direct debit collections |
| Revolut Business | Revolut merchant acquiring |
| Klarna, Braintree or Authorize.net | Buy now pay later and gateways |
Marketplaces, delivery and bookings
| Platform | Who it suits |
|---|---|
| Amazon and Amazon FBA | Online sellers and FBA businesses |
| Just Eat | Takeaways and fast food |
| Deliveroo | Restaurants and takeaways |
| Uber Eats | Restaurants and takeaways |
| Airbnb | Hosts and serviced accommodation |
Not listed here? Lenders on our panel accept more than 70 payment processors, including Booking.com, TikTok Shop, Clearpay, DNA Payments and Checkout.com. If you take card or online payments through any UK provider, get in touch and we will confirm whether it can be funded.
Merchant cash advance FAQ
What is a merchant cash advance?
A merchant cash advance is a form of business funding where a lender advances you a lump sum in exchange for a percentage of your future card sales. It is also commonly called a business cash advance. Repayments are taken automatically as a fixed percentage of your daily or weekly card takings until the advance plus the agreed fixed fee is repaid.
How does a merchant cash advance work in the UK?
You receive a lump sum based on your recent card turnover, typically 1 to 2 times average monthly card sales. A fixed factor rate is agreed in advance. The lender then takes an agreed percentage of your future card machine or online card payments, usually between 1% and 26% of daily takings, until the total amount due has been collected. Quiet months mean lower repayments. Busier months mean faster repayment.
How much can I borrow with a merchant cash advance?
Most lenders offer between £5,000 and £2 million, and more than that on renewals. The exact amount depends primarily on your average monthly card sales, trading history, sector and existing commitments. Most UK businesses can access 1 to 1.25 times their average monthly card turnover, with a maximum of around 2 times.
What does a merchant cash advance cost?
Costs are expressed as a factor rate rather than an interest rate. Across our panel in September 2026, factor rates range from about 1.03 to 1.35, meaning you repay between £1.03 and £1.35 for every £1 advanced, with most cases between 1.10 and 1.25. The total cost is fixed at the outset so you know exactly what you will repay. For example, at a factor rate of 1.20, for every £1,000 you borrow you repay £1,200.
Who can apply for a merchant cash advance in the UK?
Most UK businesses that take regular card payments can apply, including limited companies, sole traders and partnerships. Typical minimum requirements are 3 months trading and average card turnover of £5,000 per month, although criteria vary by lender. Low credit scores or previous declines do not automatically rule you out.
Do I need to be a homeowner to get a merchant cash advance?
No. Unlike much unsecured business lending, merchant cash advance lenders do not cap the advance based on whether the directors own property. Lenders in this market have funded well over £1 million to non-homeowners where affordability and credit support it. The decision rests mainly on the card turnover coming through the terminal or gateway.
How quickly can I get the funds?
A decision usually comes back within 24 hours of the lender receiving a complete application. Funds are typically paid into your business account 2 to 14 working days after contracts are signed. The application itself is usually straightforward and can often be completed with open banking or recent bank statements.
Can I repay a merchant cash advance early?
You can usually repay early, but because the total cost is fixed by the factor rate you will not normally save money by doing so. You simply pay the remaining balance of the agreed total. If you already have a cash advance in place you may be able to renew or top up once around 60% has been repaid.
Can I refinance an existing merchant cash advance with another lender?
Often yes. A new lender can buy out an existing advance where you qualify for a facility of at least twice the outstanding balance with your current provider, so the old advance is settled and there is meaningful new money left over. If that test is not met, a top up with the existing lender once 60% has been repaid is usually the better route. We can compare both.
Can I have more than one merchant cash advance?
Most lenders only allow one advance against a single card processor at a time. However, if you take payments through multiple providers, for example Worldpay plus Just Eat or Shopify, it may be possible to arrange additional facilities. A cash advance can also sit alongside other borrowing such as a bridging loan or a secured facility, because it is repaid from a different source.
What can I use the funds for?
The funds can be used for almost any legitimate business purpose, including stock, refurbishment, marketing, tax bills, equipment, hiring staff, expansion or general cash flow support.
Is my business eligible for a merchant cash advance?
A UK business can apply for a merchant cash advance if it has been trading for at least 3 months and has card turnover above £5,000 per month. You do not need to be a homeowner and could still be accepted with a low credit score.
Are merchant cash advances a good or bad idea?
A merchant cash advance provides access to business finance on a short term basis and is usually repaid within 6 to 12 months. It could give access to funding when you are not able to get other types of business funding and have been declined. However it may be more expensive than an alternative, such as a business loan. We cannot give financial advice, therefore you will need to assess if the benefit is worth the cost of borrowing.
Is a merchant cash advance regulated by the FCA?
Merchant cash advances are generally unregulated products in the UK when provided to limited companies. They do not fall under the same consumer credit rules as personal loans. Bolton Business Finance is not authorised by the FCA and arranges non-regulated, business-purpose finance only. We always recommend you carefully consider the total cost and whether the flexibility justifies the fee.
Apply for a merchant cash advance
Tell us your card turnover
As an independent finance broker, we can guide you through the application process and compare providers. Send us your average monthly card turnover, how long you have been trading and which payment provider you use, and we will come back with what is available. There is no broker fee on a merchant cash advance.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders.
Marcus arranges merchant cash advances, business loans, asset finance, invoice finance, commercial mortgages, bridging and development finance. Call 0161 546 9128.
Marcus is also the author of UK Commercial Finance (2026), a commercial finance book for UK business owners and property investors.
Bolton Business Finance Ltd is an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Figures on this page are illustrative panel ranges as at September 2026, not quotes, and we are not affiliated with any lender or payment provider named. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.